Jackie Miller Independent For Congress We The People Medical Insurance Solutions American Energy Solutions End the Federal Reserve Senior Concerns Doable Economic Solutions

Doable Economic Solutions

Our Economy and Real Solutions

Unemployment

Tax Simplification

Inflation

AUGUST 2010

There is NO doubt unemployment will remain high unless we stop electing politicians who are in the pockets of the banksters, Wall Street, unions, lawyers, big Pharma etc. instead of in the pockets of "We the People."  Please hire me and we will get our economy rocking and rolling again!

Unemployment

Few economic indicators are of more concern to Americans than unemployment statistics. The traditional unemployment rate is calculated from monthly household survey results using a fairly explicit qualification of "unemployed" (essentially unemployed and currently looking for full time employment) leaving many workers to be effectively "on the margin", either employed in part time work when full time is preferred or simply unemployed and no longer looking for work. The Bureau of Labor Statistics considers "marginally attached" workers (including discouraged workers) and persons who have settled for part time employment to be "underutilized" labor.

The broadest view of unemployment (and most accurate) should include both traditionally unemployed workers and all other under utilized workers. Each percentage rate in September 2004 and September 2009 is as follows:

Sept. 2004

Sept. 2009

Bureau of Labor Statistics (BLS)

5.4%

9.8%

Total Unemployment

9.5%

16.5%

Note that the "spread" between the BLS and Total Unemployment has widened from 4% to 7%. In other words, not only has the percentage of those currently looking for work increased, but those on the margin have increased an additional 3 percentage points. Another way of looking at this is that the spread has grown by an astounding 75%. What can be some of the causes for both the BLS and Total Unemployment rates to increase?

  • The market place has been saturated with goods well beyond what is needed by the American consumer. The best example of this is the auto industry. There simply is not a market or a demand for the quantity of automobiles that have been produced, or required to be produced to maintain factory employment levels. Energy cost has also influenced the type of automobiles wanted by consumers. Another example is televisions. How many televisions can one (1) home use? Yet more and more have been produced with no place to go. Many other examples can be stated.
  • When the subprime loan market collapsed, banks could not loan to large or small businesses to maintain the flow of capital into the business, thereby requiring the business to slow down, and in some cases close up shop. In addition, the banks were "bailed out" to the tune of billions, while at the same time increasing the interest rate to both businesses and consumers, thereby reducing the requirement for maintaining the current work force, thereby reducing spendable income to the unemployed work force, thereby reducing demand for goods and services, thereby reducing the requirement of maintaining or increasing the work force.
  • Sources & further factors affecting unemployment can be obtained from:
    1.www.seekingalpha.com
    2.www.bls.gov
    3.www.econlib.com
    4.www.cato.org
    5.www.tsowell.com

The economy can not improve until employment increases. If there is no purchasing power, the surplus goods will remain in inventory. If stimulus money is utilized, the money needs to go to the place(s) where the most jobs can be created. That is the public sector, since government does not create any products, it just spends money. And with unemployment also comes lower taxable income which results in more money printed (inflation) and higher taxes on those who are still employed, or even retired. The solution is smaller government, less Government spending, as well as a reduction in business and personal taxes.